But the short put profits made up for the short call losses Not as much as I wanted but better safe than sorry. Closed out short puts short calls. Hey Geico has to pay out claims every so often. Took a loss on the short calls, but I had plenty of premium made in the short puts to offset the call losses. Anyhow rule of Options, always hedge and have spare chutes as well and of course understand the greeks so you understand the risk profile and can work out scenarios for hedging positions and re hedging. Rules of Options. #1 Dont get greedy. #2 Take action quickly when risk thresholds rise. #3 Document mistakes and lessons learned.